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SHI FX Strategy - Strategy of Intraday Trading

Thursday, 28 December 2017 13:00
SHI FX Strategy - Стратегия внутридневной торговли на Форекс

SHI FX Strategy is a trading method in the Forex market, which is used with the 15-minute charts and based on the indications of indicators. Traders note its profitability and simplicity of opening the positions.

Fundamentals of SHI FX Strategy

According to SHI FX Strategy, intraday trading is based on opening transactions into the price channel, in the direction of the market’s trend. You can use it on any currency pairs. For technical analysis, four tools are required. Each of these tools will be considered below.

  1. SHI Channel. This indicator displays a dynamic channel. In its settings, you should indicate some candlesticks, which will be taken into account in building.

100028_стратегия_внутридневной_торговли_на_форекс_shi_fx_strategy_1

  1. Also, to apply this strategy, you will need i_Trend – a signal filtering, which allows opening a position only under favorable conditions. Its parameters can be seen in the figure below:

100028_стратегия_внутридневной_торговли_на_форекс_shi_fx_strategy_2

  1. This tool is pretty often used by the traders, who prefer scalping. It allows identifying the most short-term trends. You should set values of the following levels: 0.15, 0.45, 0.75.
  2. PerskyAsctrend gives additional trading signals. Its parameters are displayed in the following figure:

100028_стратегия_внутридневной_торговли_на_форекс_shi_fx_strategy_3

After all necessary preparations and adding the indicators in the MetaTrader terminal, the chart of SHI FX Strategy will look, as it shown in the figure:

100028_стратегия_внутридневной_торговли_на_форекс_shi_fx_strategy_4

Trading Algorithm by SHI FX Strategy

Among all these analysis tools, the most significant is SHI Channel. The first thing you need is to check a formed trading range. If its lines are directed upwards, open only a Buy order. If the lines are directed downwards, open a Sell order.   

Pay attention to the width of the range. If it is too narrow, it is better to stop trading and wait until it becomes wider. Then, you can start to look for a good opportunity for making a deal.

SHI FX Strategy suggests the following necessary conditions for opening Buy orders:

  • The bullish trend, which is indicated by the top direction of SHI Channel. It is better to use such situations when the chart moves lower than the central line.
  • The green curve i_Trend crosses a red one from the bottom up.
  • The Laguerre indications are higher than 0.15.
  • PerskyAsctrend shows a green mark below the asset’s price.

Sell orders are opened according to the opposite principle.

If you see that all these requirements for SHI FX Strategy are met, open a position in the direction of the trend. Stop Loss is set at a distance of several pips from the border of the range.

Exit from the Market

SHI FX Strategy involves a few methods for closing orders, depending on the situation and preferences of a particular trader.

Exit when you receive the opposite signal, or when the price chart reaches the opposite border of the range. Also, you can set a fixed Take Profit level, depending on the volatility of traded currencies. The experts recommend applying a partial closure of positions, as soon as the price approaches the middle line of the channel.  

Advantages and Disadvantages of the Strategy

Among the pluses of this method are a high-quality technical analysis and clear algorithm. At the same time, you cannot open a position often. We advise checking each signal using additional filters, carefully reviewing compliance of market conditions with all the strategy’s rules.

Before starting real trading, we recommend testing it on a demo account.

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David Melton
David Melton

Financial expert. I work with investors and different companies. I write analytical reviews for newspapers and TV channels and I also manage researching projects

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